Priority Sector Lending

Transcription

1 Priority Sector Lending Referring to Master circular PSL Targets and classification -dtd 01 July 2015

2 Categories under Priority Sector Agriculture Micro, Small and Medium Enterprises Export Credit Renewable Energy Education Housing Social Infrastructure Others

3 Components of Priority Sector Lending Priority Sector Lending Agriculture Other than Agriculture Farm Credit MSME/Export Credit Agri Infrastructure Education/Housing Ancillary Activities Renewable Energy/ Social Infra

4 PSL Target for Scheduled Commercial Banks Summary of Targets: Description As % of ANBC* Overall Priority Sector 40% 1. Agriculture (Farm Credit + Agri Infra + Ancillary Activities) 18% 1a. Small & Marginal Farmers@ (SMF) 7% (to be met by March 16) 8% (to be met by March 17) 1b. Other than SMF 11%/10% 2. Non -Agriculture 22% 2a. Micro Enterprises 7%/7.50% 2b. Other than Micro 15%/14.5% Weaker Sections (Sub target within PSL) 10% *ANBC -Adjusted Net Bank Credit

5 Agriculture: Farm Credit Borrower 1. Individual Farmer (including SHGs & JLGs) 2. Firms/ Corporate/ FPC/ Cooperatives (Limit 2 Cr) Purpose/Activities 1. Crop Production/Plantation & Horticulture 2. Dairy/Fishery/Poultry / Animal Husbandry & other allied 3. Pre & Post Harvest Activities (Spraying/weeding/harvesting/grading/sorting/transportation) 4. Purchase of inputs/machinery/irrigation equipments 5. Developmental Loans for farm & allied activities 6. Commodity Finance up to 50Lakh

6 Agriculture: Agriculture Infrastructure Limit Restriction 1. Aggregate Banking Limit for the PURPOSE 100 Cr Purpose/ Activities 1. Construction of storage facility (warehouse, market yard, cold chain, silo) for the purpose storage agriculture produce/products. 2. Soil Conservation & Watershed development 3. Plant tissue culture & agri biotechnology & Seed production 4. Production of bio pesticides, bio fertilizer & vermi composting

7 Agriculture: Ancillary Activities Borrower Limit Restriction Purpose/ Activities 1. Firms/ Corporate 2. PACS/ FSS 3. MFI 4. Individual Borrowers 1. Aggregate Sanctioned Banking Limit for F&A Processing 100 Cr 2. Loans to Co-operative 5 Cr 1. To co-operatives for disposing off the produce of members. 2. For food and agro-processing (Milk/Meat/Grain/Cereal /seed / F & V / oil seed processing or Confectionary/Snack food /Namkeen/ Biscuit/ RTE /RTC manufacturing units) 3. To PACS, FSS & MFIs for on lending to agriculture 4. Commodity Finance to Food & Agro Processing units 5. Loans for setting up of Agriclinics & Agribusiness Centers

8 Computation of Small & Marginal Farmer Category Small & Marginal Farmer- Individual Small Farmer- Landholding more than 1 hectare and upto 2 hectare Marginal Farmers- Farmers with landholding of upto 1 hectare, agricultural labourers, tenant farmers, oral lessees, share-croppers, whose share of landholding is within the limit prescribed for SMF. Self Help Groups (SHG)/Joint Liability Group (JLG) Group of individual farmers Small & Marginal directly engaged in Agri & Allied activities, banks to maintain aggregated data. Farmer Producer companies(fpcs) and Cooperatives FPCs and Cooperatives engaged in Agri & Allied Activities, where membership of Small and Marginal Farmers is not less than 75% by number and whose landholding share is also not less than 75% of total landholding.

9 Other than Agri: MSME Manufacturing Micro Small Medium Investment in P&M <=25.00 Lacs > 25 Lacs <= 5 Cr > 5 Cr <= 10 Cr Service Micro Small Medium <=10.00 Lacs > 10 Lacs <= 2 Cr > 2 Cr <= 5 Cr Note: Manufacturing Enterprises: No Cap in the sanctioned limit is prescribed in circular for Manufacturing enterprise. Service Enterprises: For Micro & Small service enterprise, individual bank sanctioned limit is INR 5 cr. For Medium enterprise, Maximum sanctioned limit is INR 10Cr.

10 Other than Agri: Export Credit Limit Restriction 1. Bank Sanction Limit (YBL Limit) of 25 Cr per borrower with turn over <=100 Cr General Guidelines 1. Incremental Export Credit will be monitored at Bank level (and not borrower level) subject to upper cap of 2% of ANBC. Other than Agri: Renewable Energy Purpose / Activity 1. Loans for solar based power generators, biomass based power generators, wind mills, micro-hydel plants. 2. Non conventional energy based public utilities ( street lighting, remote village electrification) Limit Restriction 1. Individual Household: 10L per borrower 2. Others: Bank loans up to limit of 15 Cr. Limits are independent of INR 100 Cr. cap on F&A sector in Agri ancillary segment.

11 Other than Agri: Education & Housing Housing Purpose / Activity 1. Purchase / construction of one dwelling unit by Individual 2. Housing projects for economically weaker (<2LPA Income) 3. On lending to HFCs Limit Restriction L in metropolitan centers (overall cost of the dwelling unit <= 35L) No cap on annual income 2. Rs 20 L in other centers (overall cost of the dwelling unit <= 25L) 3. Housing projects : 10 L per dwelling unit Education: To individuals for educational purpose (incl vocational courses) up to 10L

12 Other than Agri: Social Infra Borrower Borrowers in Tier II to Tier VI centers ( less than one lakh population) Purpose / Activity Loans for bulding social infrastructure ( schools/health care /drinking water/sanitation facility) Limit Restriction Bank Loans upto INR 5 Cr.